\nshow that the number of companies elected into Patent Box
\nmarginally increased in the tax year 2022 to 2023 compared with the
\nprevious year (to 1,640 from 1,630 companies). This means that the
\nyear on year increase in companies from tax year 2013 to 2014
\ncontinues, albeit more gradually from tax year 2017 to 2018. It is
\nalso estimated that, in the tax year 2023 to 2024, the number of
\ncompanies will maintain this trend (i.e. 1,650 companies). Thus,
\nalthough the number of companies electing into Patent Box is
\nincreasing, it is only by a relatively small number in recent
\nyears.<\/p>\n
UK Patent Box enables companies to apply a lower rate of
It is projected that the value of relief claimed under the
As in previous years, large companies are claiming more tax
It will be interesting to see if these trends continue or if
The statistics indicate that it is estimated that only 65
A few questions that these companies could ask themselves is
It is important to appreciate that, when a closer look is taken
For more information on how we can help to protect your
The number of companies receiving relief varies significantly
\nCorporation Tax (10%, as compared with a main rate of 25% from
\nfinancial year 2023 to 2024 onwards) in the UK to profits earned
\nafter 1 April 2013 from qualifying patented inventions and
\nequivalent forms of intellectual property. This is designed to
\nencourage companies to keep and commercialise intellectual property
\nin the UK. See my previous article<\/a> for more details.<\/p>\n
\nPatent Box went up from \u00a31,449 million in the tax year 2022
\nto 2023 to \u00a31,977 million in the tax year 2023 to 2024. This
\nrelatively large increase in value of relief in tax year 2023 to
\n2024 was driven by the change in the main rate of Corporation Tax
\nfrom 19% to 25% on 1 April 2023. In other words, the benefit per
\nclaimant surged, but the number of claimants did not. This is
\nimportant as Patent Box can have a bigger impact on effective tax
\nrates (ETR) for companies in the regime.<\/p>\n
\nrelief on average. It is estimated that 28% of companies were
\nclassified as ‘Large’ and accounted for most of the relief
\nclaimed (95%). Medium and small companies are estimated to make up
\n28% and 26% respectively of companies claiming relief in tax year
\n2023-2024 but only account for 5% of the relief claimed.<\/p>\n
\nmore companies, especially SMEs, realise the benefit of claiming
\nPatent Box relief, particularly considering the increased reduction
\nin rate of Corporation Tax.<\/p>\n
\ncompanies (4% of total) in Scotland benefited from relief in tax
\nyear 2023-2024 and it could be argued that this is a strikingly low
\nfigure when set against Scotland’s strong innovation ecosystem.
\nHowever, it has to be recognised that the reported region is based
\non addresses given to HMRC for tax purposes, e.g. a HQ in London,
\nwhich may not be where the R&D or manufacturing occurs. So the
\napparent low Scottish count may be partly a reporting artefact, but
\nit appears to not be entirely due to this. Thus, since Scotland
\nconsistently punches above its weight in R&D activity and
\nuniversity\u2011driven innovation, it appears that there may be a
\nrelatively lower Patent Box uptake in this region and there may be
\nopportunities for more Scottish based companies to benefit
\nfinancially from this tax relief.<\/p>\n
\n“Can we identify any patentable technologies or processes
\nthat have not yet been protected?”, “Do we have
\n(or expect to have) a granted patent or qualifying IP?”
\nand “Are we generating (or will we soon generate) profits
\nfrom the patented product\/process?” If the answer to any
\nof these questions is “YES!” then electing into the
\nPatent Box should be considered if it has not already been
\ndone.<\/p>\n
\nat a company’s product development, there is often patentable
\ntechnologies and processes that they have not yet protected. The
\nbar to obtaining a granted patent is often lower than may be
\nconsidered by a company who are just carrying out “business as
\nusual”. For example, a small new tweak in a long standing
\nproduct or process may be patentable, e.g. if it solves a problem
\nor has some advantage and is non-obvious.<\/p>\n
\nIntellectual Property and derive further benefits from doing so,
\nplease get in touch.<\/p>\n
\nacross UK regions.<\/p>\n
![\"\"\/](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/www.gov.uk.png\")